4. Returns and Actions. Samantha Rennakker from Collegedale, Tennessee, has $50,000 in investments at the beginning of
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4. Returns and Actions. Samantha Rennakker from Collegedale, Tennessee, has $50,000 in investments at the beginning of the year that consisted of a diversifi ed portfolio of stocks (40 percent), bonds (40 percent), and cash equivalents (20 percent). Her returns over the past 12 months were 13 percent on stocks, 6 percent on bonds, and 4 percent on cash equivalents.
(a) What is Samantha’s average return for the year?
(b) If Samantha wanted to rebalance her portfolio to its original position, what specifi c actions should she take?
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